Corn Market Recap – 6/6/2017Posted 06/06/2017 3:37PM CT |
July Corn finished up 4 1/4 at 377 1/4, 2 1/2 off the high and 6 up from the low.
September Corn closed up 4 1/4 at 385 1/2. This was 6 up from the low and 2 1/4 off the high.
The market saw choppy and two-sided trade early but traded sharply higher into the mid-day with December corn moving up to the highest level since March 7th. Ideas that a combination of lower acreage and below trend yield might tighten the ending stocks outlook considerably helped to support the strong gains. After little or no rain over the past 1-2 weeks, the dry forecast could spark a quick drawdown in topsoil moisture if more widespread rains do not develop. The 1-10 day forecast is mostly hot and dry. The 5-day models are very dry. Iowa is already 9% short in topsoil moisture and Minnesota 7%. Nebraska is 17% short to very short. South Dakota and North Dakota are 54% short to very short. For Friday’s Supply/demand update, traders see US ending stocks at 2.085 billion bushels (1.985-2.200 billion range) as compared with 2.110 billion last month. If there are adjustments in acreage or yield, the report could be a bullish surprise. A jump in Brazilian production could be an offset. Consider buying December Corn on breaks with 413 and 447 as targets.